Businessmodel of Fox Entertainment Group

Customer Segments

Fox Group’s content is produced for various segments of the general consumer market. The Group’s varied portfolio of television and motion picture products includes mainstream movies – such as the Avatar and X-Men franchises – aimed at the mass market, low-budget films targeted at niche audiences, television series and non-fiction broadcast documentaries.

Motion picture content is sold and licensed to cinema chains across the US and the world, before being sold and licensed to national and international broadcast and cable television networks, as well as to on-demand and streaming service providers.

Value Propositions

Fox Group is a well-respected and well-established producer of entertainment content. Its brand is associated with quality programing and motion pictures, working with many of the most popular and recognisable figures within the entertainment industry.

The Group provides a varied portfolio of properties, catering to all demographics across multiple channels. The Group’s content is accessible internationally, with consumers able to view Fox Group content through movie theatres, DVDs and Blu-rays, digital downloads, and on-demand and streaming platforms.

Channels

Fox Group employs a range of channels through which it distributes media content to consumers. Primarily, the Company distributes original and third-party motion pictures through cinema chains, both across the US and internationally.

Once cinema screenings have ended the Group distributes its movies physically in the form of DVDs and Blu-rays, which can be purchased online or through physical outlets, and in the form of digital downloads from platforms services such as Amazon and iTunes.

Selected Fox Group movie and television content is also licensed to on-demand and streaming services like Netflix and Hulu. Additionally, he Group’s television programming is made available to consumers through Fox Group’s various cable and broadcast channels, including the National Geographic network, FX and several Fox Sports channels.

Beyond the consumer market, Fox Group customers, such as broadcast networks and streaming and on-demand platforms, deal directly with the Group’s sales and marketing teams.

Customer Relationships

Much of Fox Group’s products and content are available to consumers on a self-service basis through cinema chains, physical retail outlets and online digital marketplaces, with customers requiring no interaction with Fox Group representatives.

The Group’s corporate and business clients, such as streaming and on-demand service providers and movie theatre chains, must deal directly with members of the Group’s sales and marketing team, receiving a more personalised service.

Fox Group keeps its consumer base updated with developments and announcements through its various social media accounts, including with Facebook, Twitter and YouTube, and through marketing materials including movie trailers.

Key Activities

Fox Group produces and distributes entertainment media content, including motion pictures, television broadcast programming, and cable network programming, as well as operating its own broadcast television network.

The Group operates through four business divisions: Film, comprising the production, acquisition and distribution of movie content via 20th Century Fox Film and Twentieth Century Fox Home Entertainment; Television, comprising the production, distribution and licensing of television programming through the its flagship studio Twentieth Century Fox Television and networks controlled by the Fox Networks Group, as well as through third-party networks; Sports, which broadcasts live sporting events; and National Geographic Partners, comprising the production of various non-fiction programming and the operation of broadcast networks.

Key Partners

Fox Group’s partners include financiers, marketing partners, licensing partners, content partners, co-production partners, and distribution partners. Much of the Group’s motion picture productions are financed by third-parties from across the world. This includes a recent investment of $235 million in The Seelig Group – a Fox Group financier – from China’s Bona Film Group, which saw the Chinese group take a stake six Fox Group properties, including the Oscar-nominated The Martian.

The Group has also partnered with several companies to produce additional channels and products for the consumer market, including a deal with Entertainment One to launch home entertainment ventures and a tie-up with Walt Disney and Lions Gate Entertainment to invest $50 million in Atom Tickets, a start-up that offers discounted cinema tickets to users via a mobile app.

Fox Group also has licensing partnerships in place that allow Lego to produce The Simpsons branded merchandise and for Dubai-based Al Ahli to develop a Fox Group branded theme park and resort.

Key Resources

Fox Group’s key resources are its proprietary movie and television properties – including major film franchises such as X-Men, its broadcast and cable television networks – including National Geographic and Fox Sports, its brand name and reputation, and its personnel.

The Group’s studio space is also a key resource for both content production and generation of revenue.

Cost Structure

Fox Group’s most major cost comes in relation to the production of motion pictures and television programming, the distribution of proprietary and third-party content, and the development and presentation of advertising and marketing campaigns.

The Company also accrues costs in relation to the operation of its large studio lot, as well as the retention of its personnel.

Revenue Streams

Fox Group generates revenue through the production, distribution, licensing and sale of original motion picture and television programming content, as well as the acquisition and distribution of third-party content. The Company has various methods by which it monetises and distributes its motion picture content. This principally includes worldwide distribution of motion pictures through international cinema networks, with revenue generated through box office sales. Movies are later sold to consumers in the form of DVDs, Blu-rays and digital downloads, available both through physical outlets and online marketplaces such as Amazon and iTunes. Fox Group’s movie content is also licensed to on-demand and streaming service providers like Netflix for a fee.

Fox Group also produces television content for cable and broadcast networks, distributing third-party and original content through Twentieth Century Fox Television and Fox Networks Group, which includes national and international television channels such as FX, Nat Geo WILD, FSN and Fox Sports. The Group’s television programming and network operation activities generate revenue through the sale of advertising space and through the licensing of programming content to streaming and on-demand services.

Additionally, Fox Group generates revenue through the sale of merchandise and the licensing of its entertainment properties, and through the rental of studio space.